$TSLA Breaking Out
#260 An update on $TSLA
Introduction
George Bayer, a contemporary of W.D. Gann, documented nearly 60 trading rules over 85 years ago that remain applicable in today’s markets. These rules, whether stocks, indices, commodities, or even (crypto-)currencies, are still effective in today's markets. Confirming these rules with other indicators like patterns and technical analysis may be very effective in improving one’s trading.
I agree with what Larry Pesavento noted in his book Planetary Harmonics of Speculative Markets about these rules long ago.
“My intrigue with Bayer’s approach to the markets stems from the importance that he placed on the planet Mercury. Since ancient times, Mercury has been associated with speed and communication. As the fastest-moving planet, Mercury offers more potential signals for trading. As you might have guessed, my first exposure to one of Bayer’s techniques resulted in a whopping profit. There is something about quick profits that captures your attention.”
And…
“You must understand that Bayer used more than 50 rules to trade in this one book alone. I assume that the planetary phenomenon that Bayer discovered was an unusual way to measure the market's psychological impulses (Fear or Greed). After looking at many of these different markets, I think you will find that these rules do indeed apply today. Think about it for a minute. Don’t you think Treasury Bond and Stock Index traders think, act, and feel exactly like Wheat traders? Of course they do!”
Larry Pesavento
The trading rules George Bayer documented over 85 years ago are jaw-dropping and still applicable in today’s markets.
Currently, $TSLA is experiencing a breakout from a rectangle bottom formation, which also perfectly aligns with one of George Bayer's rules. If TSLA continues to break out from the pattern below, a seasonal high in June may be on the horizon, looking at one of these George Bayer rules, where changes in trend may occur.
Premium subscribers can read more on the TSLA breakout and forecast below.